Fiat loans against BTC collateral (eg nostr:npub19yfzme2usrukjgwxs3eekfnj5xhnarygpqjr2m48agsvvgz32ggqhymc68)
Discussion
hmmmm this could actually be a very smart idea and save me from capital gains tax
I haven't used Debifi myself yet (but following it with interest). I take loans from another provider in USDt and then convert that USDt to fiat by a little bit of a roundabout way (but one that nets me a an additional 4%).
Loans against BTC collateral is a very promising area for development (and with more competition will come better options and lower rates). That's because BTC is the best form of collateral.
What are you using?
For USDt loans? Currently using Bitfinex with a relatively small amount of BTC that was already KYCd. Will go with HodlHodl soon for better privacy. Bitfinex does have a fairly frictionless UX though, which is convenient. Probably I will pay off the loan on Bitfinex with USDt from an HH loan and then reuse the freed BTC collateral on Bitfinex. Could keep recycling it in that way.
I disagree. Remember that banks print the money they give out in traditional loans. AKA they get that money for free. Bitcoin lenders are shut out of that game and must acquire money the hard way to make a loan.
That explains the clown world scenario where I get better rates unsecured than with bitcoin collateral.
I think the balance never tips. Bitcoin loans will always reflect the risk inherent in a loan. Fiat loans will simply go away as they make no sense loaning something worthless.
That means no bitcoin loan will ever reach the 0% we get today after accounting for inflation in the fiat world. It simply makes no sense to tie a loan to a scarce asset and lose money guaranteed.
Don't play with taxes. That gives govt legit reason to prosecute you...
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Happy to help. Thanks!
